A Business Owner Policy is an insurance policy that focuses on small and medium businesses and owners. It provides financial protection against perils like property damage, business interruptions, loss due to crime or cyber incidents, or general liability. The policy also covers claims that arise from lawsuits and employee liability at the business place. With any specific needs of the business, additional insurance coverage may be necessary. A small business owner may not always require extensive insurance coverage and could customize the BO policy as per the business requirement within the allowable parameters. We at Gonzalez Insurance have been a small business at one time, and know that some of this can get confusing. Queries regarding the Business Owners Policy (BOP) coverage could arise in the minds of every such owner. Here are some answers for them.

Which business requires the BOP Insurance coverage?

• If you own a small business having a physical location, irrespective of the type of location, you require BOP coverage. The business location could be your home, garage, rented, or owned property. Your business and assets can be protected from liability by insurance.
• If you have clients and contracts the probability of lawsuits and liability increases and you need this policy as coverage against that.
• If you have valuable business assets, computers, electronic hardware, jewelry, furniture, fixtures, etc., liabilities from theft or damages increase, the BOP protects your business against the same.
• If you have a liability rising due to the professional services, including those provided outside your premises to customers
• If your business is growing big and has hired employees, the BOP can protect you against liability arising due to injury, property damage, and unexpected lawsuits.

What are the obligations of the BOP Insurance Policy?

The Business Owners Policy can be quite affordable. It has a broad coverage against perils like:

• Fire: In the unfortunate event of a short circuit or accident on your premise leading to damage by fire to property, equipment, or inventory, the loss and liability are huge. Having a BOP could help you tide over this situation.
• Theft and Loss: A theft at your business place involving physical items or if fraud or forgery occurs, this can cause financial and mental stress. Having a BOP could keep you assured of safety from the financial liabilities, which the coverage provides.
• Income loss: A business interruption caused by any peril, personal or otherwise can lead to loss of income. A BOP provides the necessary financial coverage to pay your bills and employee salaries to tide over the event.
• Employee and other liability: There may be instances where an employee, customer, or anyone gets injured or has personal property damage in your business premises. The liabilities for the same stay yours, medical and other expenses are taken care of by the BOP insurance policy.

What other liabilities can you insure against by additional coverage to BOP?

The BOP Insurance coverage can get customized to any specific business liabilities that your business is exposed to, depending on the nature of the business or service you provide.

Online and Cyber liabilities:

Today every business has to use online transactions and processes for customer payments, and inventory acquisition. Businesses today are being increasingly targeted in cyberspace. The losses in case of online frauds, data breaches, cyber hacking, and damage to computer and electronic systems are always huge. BOP can have additional coverage for this type of liability.

Employment Practices liabilities:

Adding on employees in a business involves liabilities of claims against wrongful employment process like discrimination, wrongful termination, harassment, etc. Customized coverage will cover the expensive legal charges in such an instance.

Professional liabilities:

Your business may be a professional service extended or services provided to customers outside your premise. Any intentional negligence or errors can attract a lawsuit. Protect yourself and the business from such liability by taking a customized BOP.

Auto liabilities:

Small businesses that have vehicles and are involved in loading and offloading can get involved in accidents and incidents causing liabilities like damage to trucks by vandalism, theft, road accidents, natural disasters or medical bills, and hospitalization from injury and accidents on the road. Adding auto insurance coverage to the BOP can keep you protected from the inevitable sudden loss.

Delayed income liabilities:

Loss of income and delay in accounts receivables caused by unpaid invoices are stressful and upset business cycles. Ensure your business security by adding coverage to your BOP to protect yourself from such disruptions.

The Business Owners Policy is possibly the most popular insurance with small businesses. An insurance policy protects a business seamlessly by mitigating financial loss and provides stability and continuity in difficult times. Availing of the additional insurance ensures that your business remains adequately protected against unexpected perils leading to bankruptcy. Whether you have a new business venture or expanding an existing one, before finalizing your Insurance coverage you need to take stock of your liabilities and evaluate what is best for you and your business. At Gonzalez insurance, we work with you to arrive at the best solution to insure your business venture. Being safe and free from liability is the best option when going into business. Get in touch with us today to secure your business and stay clear of painful liability.